New Relief Funds; Eased Lending Terms for Accelerated Payments
October 30, 2020 | Rivkin Rounds Staff | Behavioral Health | COVID-19 | Hospitals | Legislation and Public Policy | Medicare and Medicaid | Nursing HomesAn October 22 article in Part B News, “Welcome third round HHS relief funds, eased lending terms for accelerated payments,” discussed the Centers for Medicare & Medicaid Services’ Accelerated and Advance Payment Program (recently discussed here) and the Department of Health and Human Services’ CARES Act Provider Relief Program (recently discussed here). Rivkin Radler’s Eric Fader and Bob Iseman were both quoted in the article.
CMS recently extended the repayment period for the Accelerated and Advance Payments Program and reduced the interest rate for balances that are not repaid within 29 months. “The 10.25% rate seemed punitive, as though CMS was saying, ‘Look, we’re not trying to be a bank,’” Eric said, “but 4% puts it back in the range for a good commercial loan.”
The third round of Provider Relief Program funding expanded the pool of eligible providers. Bob suggested that the inclusion of behavioral health providers may be “an attempt to make sure that they maintain availability” during a time when COVID-19 is contributing to behavioral health problems as well as physical issues for patients.
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